- Investor enthusiasm for technology stocks helped lift the Nasdaq Composite Index to a record this week, while the S&P 500 and Dow Jones Industrial Average were little changed. The Nasdaq, which gained prominence during the dot-com boom of the 1990s, advanced in four out of five days amid gains in the computer and transportation industries, each of which rose at least 1 percent. The S&P 500 ended the week down 0.1 percent and the Dow lost 0.4 percent. The week marked a turnaround for some of the sectors that had stood out during the market rally after Donald Trump’s surprise presidential election win. Energy shares in the S&P 500 dropped 1.9 percent, the most since the five days ended Nov. 4. Financial stocks slipped 0.1 percent Real estate companies led declines with a drop of 2.2 percent as the 10-year Treasury yield slid for the fourth straight week. Consumer discretionary stocks and tech companies added 0.8 percent.
- U.K. Prime Minister Theresa May will this week signal plans for a “hard Brexit’’ by saying she’s willing to quit the European Union’s single market for goods and services to regain control of Britain’s borders and laws, the Sunday Times reported. In a speech scheduled for Tuesday in London, May will prepare to withdraw from tariff-free trade with the region in return for the ability to curb immigration, strike commercial deals with other countries, and escape the jurisdiction of the European Court of Justice, the Sunday Times said without saying how it obtained the information. Her finance chief, Philip Hammond, in a separate interview said Britain would be willing to abandon “mainstream economic and social thinking” if it is unable to craft a favorable post-Brexit EU deal, according to the German newspaper Welt am Sonntag.
- U.S. President-elect Donald Trump called NATO obsolete, predicted that other European Union members would follow the U.K. in leaving the bloc and threatened BMW with import duties over a planned plant in Mexico, according to an interview with Germany’s Bild newspaper that will raise concerns in Berlin over trans-Atlantic relations. Quoted in German from a conversation held in English, Trump predicted Britain’s exit from the EU will be a success and portrayed the EU as an instrument of German domination with the purpose of beating the U.S. in international trade. For that reason, Trump said, he’s fairly indifferent whether the EU breaks up or stays together, according to Bild.
- Chancellor Angela Merkel’s government plans to fine social media networks such as Facebook Inc. and Twitter Inc. if they fail to combat hate speech, as German officials accuse media companies of being too slow to take action. Volker Kauder, chairman of Merkel’s Christian Democratic Union parliamentary caucus, said on Saturday that he reached a preliminary agreement with Social Democratic Justice Minister Heiko Maas that would require companies to respond to speech complaints within 24 hours. Otherwise they’ll have to pay.
Wall Street Journal:
- ‘Real Rates’ Show Real Concerns Over Trump Economic Rebound. Decline in inflation-adjusted Treasury yields signals investor doubt about future economic growth.
- Beijing Says ‘One China’ Policy Isn’t Negotiable. Donald Trump said Friday he wasn’t committed to longstanding policy on Taiwan.
- Had bullish commentary on (GOOGL), (MRK), (ATW), (GS), (PNC), (POOL), (CSX), (RDC), (DO), (HP), (NBR), (PTEN), (UNT), (AMAT), (OLED) and (HXL).
- In Scathing Attack, CIA Director Brennan Warns Trump To "Watch What He Says".
- "They Are The Opposition Party" - Trump May Evict Press From The White House.
- China's Bitcoin Exchanges Suspend Margin Trading.
- The "Most Bearish Hedge Fund" Capitulates: "We Are Beginning To Close Parts Of Our Short Book".
- Is The Biggest Treasury Drawdown In History Imminent? The "Bond Shock" Story Refuses To Go Away.
- Goldman Is Concerned: "The S&P Has Surged 6% Since The Election But 2017 EPS Forecasts Haven't Budged". (graph)
- Trump Team Responds: May Move White House Briefings To Accommodate More Than Just "Media Elite".
- Cable Plunges To Flash-Crash Lows On May's "Hard Brexit" Speech; DB Eyes GBPUSD 1.06; Euro Parity.
- Why Everyone Is Complacent: "2016 Saw The Fewest S&P 500 Drawdowns Ever". (graph)
- The Clinton Foundation Is Shutting Down The Clinton Global Initiative.
- Driverless Shuttles Hit Las Vegas: No Steering Wheels, No Brake Pedals.
- Trump Says He Is Open To Lifting Russia Sanctions, Won't Label China Currency Manipulator "On Day One".
- RealVision's 15 "Killer Charts" For Q1 2017. (graph)
- Beijing Responds: Tells "Relevant Parties" In The U.S. That "One China" Principle Is Non-Negotiable.
- The US Economy: Back On Track? (graph)
- New York Real Estate Prices Plunge In 4Q As Listing Days and Discounts Soar.
- Debunking Loretta Lynch's One-Sided 'Chicago Cops Are Racist Villains' Statistics.
- Treasury Specs Are So Short, It Is Now A 4 Sigma Event. (graph)
- D.C. National Guard Chief Fired Days Before Trump Inauguration: "The Timing Is Extremely Unusual".
- Oil Prices Are Up 90% YoY... What That Might Mean For Bonds. (graph)
- "China's Next Time Bomb" - A Look Inside The Insane World Of China's Bitcoin Traders.
- Citadel Pays $22 Million Settlement For Frontrunning Its Clients.
- YouTube Joins The "Fake News" Crusade, Shuts Down Popular Conservative Channel.
- Weekend Reading: Anticipation.
- Dow 20k Disappoints For Fourth Straight Week As Banks Pump'n'Dump. (graph)
- Everyone is asking the wrong question about Europe.
- Trump Tweets "Car Companies Have To Start Making Things Here Again".
- China's currency manipulation could become a global problem in 2017.
- Trump has a $20 trillion problem.
- Wall Street's smart money is dumping the biggest trade in stocks since Trump's election. (graph)
- Iran: 'There will be no renegotiation' of the Iran deal.
- Europe braces for the next wave of 'record levels' of migrants and economic refugees.
- New drilling technology will create an explosion of oil.
- Johnson & Johnson will begin disclosing drug price increases.
- The math doesn't add up for OPEC's oil production cut.
- Solar is getting a lot cheaper, and it's reducing investment in solar.
- Mexico says it'll respond 'immediately' to any US border tax under Trump.
- The House just took another major step toward repealing Obamacare.
- Democrats let FBI Director James Comey have it during tense closed-door meeting on Russian hacking.
- Civil-rights icon John Lewis: 'I don't see this president-elect as a legitimate president'.
- Trump 'Playing With Fire' Over Taiwan Remarks. It appears that the Trump administration is intending to use the one-China policy as its "trump card," China Daily writes in an editorial. To assume Trump and his team's remarks have been based on bluster or miscalculation seems "wishful thinking". Breaking the one-China policy may upend fundamentals for China-US relations. Trump to pay costly price if "Taiwan game" continues, the editorial said.